JUNE 2015 PHOENIX REAL ESTATE MARKET UPDATE:
The Phoenix area real estate market is hot right now for homes under $350,000. Here are the latest statistics.
MONTHLY SALES – According to the Arizona Regional Multiple Listing service, the number of SOLD homes increased 11.7% compared to one year ago. The total number of SOLD homes was 8,319.
TOTAL INVENTORY – Taking a look at home inventory levels, supplies have dropped 5% compared to last month and 15.1% compared to last year. This means that home Sellers have less competition, which tends to lean toward appreciation and home Buyers have more competition which means they need to present strong, serious offers.
INVENTORY LEVELS – The months supply of inventory is holding steady around 3 months. There are three types of markets based on inventory levels (Seller – Balanced – Buyers). Based on the number of homes for sale, it is leaning toward a Seller’s market.
SOLD PRICES – Home prices have increased between 8.6% (average) and 9.9% (median) compared to one year ago (May 2014 vs. May 2015). A lot of the price increases can be attributed to the lower inventory levels and slightly higher demand.
DISTRESSED SALES – Are homes that are either banked owned, REO also known as foreclosed and short sales. A short sale means the owner owes more money than the home is worth and needs approval to sell at a specific price. This approval can often take a long time to obtain. The number of distressed homes has dropped immensely and is down nearly 40% compared to last year. There are fewer than 5% of the homes listed for sale that are categorized as distress.
DAYS ON MARKET – The number of days on market 81 and has stayed consistent over the last year.
FANNIE MARE REPORT – THE Latest Fannie Mae report, a monthly survey of 1,000 US adults, the public is feeling better about the housing market. The report notes that 49% feel that now it is a good time to sell, up from 43% a year ago. There was also some growth in the number of respondents that reported their income grew significantly in the last 12 months.
Even though the survey doesn’t seem to indicate that people believe it’s any easier to obtain a mortgage, we are seeing a larger percentage of homes purchased with financing. In April of 2014, Maricopa County public records reported 8,406 home sales, of which 68% (5,696) were purchased with financing whereas in April 2015 that number was 73%. There were 973 more home purchases financed in April 2015 than in April 2014.
The biggest change in homes financed occurred with FHA loans. In 2014 FHA loans accounted for 18.4% of home loan purchases, in April 2015 this percentage grew to 32%. The percentage of home purchases financed continues to trend higher which translates into an improving housing market. Mortgage rates were better in April 2015 at 3.87%, compared to 4.14% April 2014 (average 30-year fixed-rate mortgage).
If you or anyone you know has a real estate need (buying or selling) call Donald Keys REALTOR since 2006 at (602) 750-1744.